Global automotive industry overweight
10/09/2004
Overcapacity troubling the global automotive industry is expected to continue, according to analysts at Robert W Baird in
A research note published on 2 September, features a 13% decline in light vehicle sales in August across the automotive industry. Despite reports of excess inventories, some manufacturers such as Chrysler and Ford, have seen their inventories decline in August.
The industry is expected to register a 2% year-on-year decline in production levels in the fourth quarter of 2004. Ford has already indicated a 5% drop in its volumes for the quarter. The analysts also expect a slowdown in the build-up of excess inventories and earnings growth of 15-20% maximum in the industry in 2005.
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